Actual federal budgets are not an accurate measure of discretionary fiscal policy because:

A) it is difficult to measure government spending accurately.
B) people cheat on their income taxes.
C) budget deficits increase during expansions even without changes in fiscal policy.
D) budget deficits increase during recessions even without changes in fiscal policy.
E) earlier administrations may have contributed to current budget deficits.

Discretionary Fiscal Policy

Economic strategies implemented by the government through changes in spending levels and tax rates to influence economic conditions.

Federal Budgets

Annual financial statements representing the government's projected revenue and spending, outlining fiscal policies and priorities at the federal level.

Fiscal Policy

Government policies concerning taxation and spending to influence economic conditions, including aggregate demand.